On 15 December 2024, the United Kingdom officially acceded to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), opening a new chapter in its global trade ambitions. For UK businesses, this milestone means enhanced opportunities to trade with key CPTPP nations, including Japan, Singapore, Chile, New Zealand, Vietnam, Peru, Malaysia, and Brunei.
Although Canada and Mexico have yet to ratify the UK’s accession—delaying certain benefits—the UK’s existing bilateral trade agreements with these countries remain in force. Nevertheless, the accession promises transformative advantages for British traders. Chief among these is the ability to leverage ‘cumulation,’ a feature outlined in Chapter 3, Article 3.10 of the CPTPP Agreement.
For companies operating within complex global supply chains, cumulation is a game-changer – it allows goods produced in one CPTPP member country to be exported from another CPTPP territory while still claiming preferential tariffs. Without this benefit, such goods would usually lose their tariff advantages if shipped through another member country.
The CPTPP allows originating goods or materials used in the production of other products within member territories to retain their originating status. This extends to permitting production undertaken on non-originating materials within the CPTPP bloc to contribute to the final product’s originating content. For UK businesses, this flexibility means greater certainty and reduced costs when navigating multi-stage manufacturing and distribution processes.
As Holly Piggott, Alinea Customs Director commented, “The CPTPP connects us to a significant trade bloc and the fast-growing region of the global economy. It creates new opportunities for importers and exporters with more favourable trade rules for manufacturers looking to sell goods to other countries and expand their distribution facilities. It also introduces complexities such as compliance with varied regulatory frameworks and our experts are at hand to help UK businesses navigate this new trading landscape.”
Alinea Customs offers professional customs clearance and consultancy services, legal advisory on supply chain agreements, and customs training to support businesses in navigating international trade, customs and regulations.
For more information about Alinea Customs and its services, visit www.alineacustoms.com.
